JPMorgan Chase & Co (NYSE: JPM) shares are trading higher after it reported Q4 net revenue (managed) of $39.943 billion, up 12% Y/Y, beating the consensus of $39.778 billion.
Reported revenue was $38.6 billion in the quarter, up 12% Y/Y. Consumer & Community Banking (CCB) revenue increased 15% Y/Y to $18.1 billion, Corporate & Investment Banking was $11.0 billion (+3% Y/Y), and Commercial Banking was $4.0 billion (+18% Y/Y).
Investment Banking fees were up 13% Y/Y, led by higher debt and equity underwriting fees. Asset and Wealth Management revenue was $5.1 billion (+11% Y/Y), and Corporate revenue stood at $1.8 billion in Q4.
Noninterest revenue was $15.8 billion, up 3% Y/Y, or flat Y/Y excluding First Republic, driven by higher asset management and Investment Banking fees.
Net interest income increased by 19% Y/Y to $24.2 billion and +12% Y/Y, excluding First Republic. Noninterest expense was $24.5 billion, up 29% Y/Y, or +24% Y/Y, excluding First Republic.
Average loans were up 17%, or up 4% excluding First Republic; average deposits were flat, or down 3% excluding First Republic.
In CCB, Debit and credit card sales volume increased by 7% Y/Y, and Active mobile customers were up 8% Y/Y. EPS was $3.97, beating the consensus of $3.32.
JPM's Q4 provision for credit losses was $2.8 billion (+21% Y/Y), including net charge-offs of $2.2 billion and a net reserve build of $598 million.
In AWM, Assets under management (AUM) stood at $3.4 trillion (+24% Y/Y), and client assets stood at $5.0 trillion (+24% Y/Y), driven by continued net inflows and higher market levels.
CET1 capital ratio stood at 15.0%, and the advanced CET1 capital ratio was 15.0%, with a total loss-absorbing capacity of $514 billion.
Outlook FY24: JPMorgan expects net interest income, excluding Markets, of ~$88 billion as loan growth is expected to partly offset lower rates impact. The bank anticipates card services NCO rate of